A technical indicator that plots changes in the value of the advance-decline index over a certain time period. Each point on the chart is calculated by taking the difference between the number of advancing/declining issues and adding the result to the previous period's value, as shown by the following formula:

A/D Line = (# of Advancing Stocks - # of Declining Stocks) + Previous Period's A/D Line Value

This indicator is used by many traders to confirm the strength of a current trend and its likelihood of reversing. If the markets are up but the A/D line is sloping downwards, it's usually a sign that the markets are losing their breadth and may be setting up to head in the other direction. If the slope of the A/D line is up and the market is trending upward then the market is said to be healthy.

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1 comments:

investment catcher said...

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お互い頑張りましょう。
Easy investment
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この記事の中でリンクしています。
Easy investment : Stochastic oscillator
【2010/02/25】
http://easy-happy-invest.blogspot.com/2010/02/stochastic-oscillator.html
よかったらご覧になってください。

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